Tesla to shut down China factory in view of Covid spread: Report

Tesla will be shutting down its factory in Shanghai, China for at least a day. This development comes in view of the spread of Covid-19 in the country and the district. A new report claims that the electric car maker will be taking this step in order to curb the covid spread. China has a zero-covid policy.

According to a report by Bloomberg, Tesla will be halting production on Monday. The information does not come from an official source. Tesla could also extend the duration of the shutdown beyond Monday. However, the report does not clarify that.

The Chinese government will be locking down the city of Shanghai in turns. They plan to conduct mass testing in hotspots, in order to isolate and reduce the spread. The area in which the Tesla plant is located will also be on lockdown for a period of four days. The report suggests that Tesla is yet to announce if they will continue to keep the shutters down for the rest of the days.

Earlier this month, Tesla had suspended production for a couple of days in Shanghai. The company is making an effort to continue production. The Shanghai plant is the company’s biggest car producer outside its home country, the USA. Currently, the Shanghai plant is producing cars for Europe, China, and other Asian countries. According to a Chinese passenger car association, Tesla has managed to deliver 56,515 new vehicles. Out of these 33,315 were exported and the rest 23,200 were built for the Chinese market.

Tesla recently opened its new Gigafactory in Berlin, Germany. This new factory may help the brand provide more attention to the European markets. Tesla is also planning to open its fourth manufacturing plant in Austin, Texas. Tesla has also moved its headquarters from California to Austin. This is the suspected aftermath of the conflict it had with the county following a prolonged shutdown due to Covid.

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